China’s Alibaba Group Holding Ltd beat Wall Street estimates for third-quarter revenue on Tuesday, as its e-commerce business benefitted from switch to online shopping triggered by the Covid-19 pandemic.
The results come as China clamps down on founder Jack Ma’ssprawling business empire, having forced the suspension of a blockbuster $37 billion IPO for Alibaba’s financial affiliate Ant Group.
Ma made his first public appearance in three months in January, helping allay investor concerns and boosting shares of Alibaba.
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Alibaba’s post-Covid-19 Singles Day sales event, the world’s biggest online shopping event that eclipses the sales of US shopping holidays Black Friday and Cyber Monday, registered total sales of $74 billion in November.
Core commerce revenue rose 38 per cent to a record high of 195.54 billion yuan in the quarter, powered by the company’s China retail marketplaces as the economy rebounded from the Covid-19 crisis.
Revenue rose 37 per cent to 221.08 billion yuan ($34.24 billion) in the three months ended December 31, above analysts’ estimates o f214.38 billion yuan, according IBES data from Refinitiv.
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Net income attributable to ordinary shareholders was 79.43 billion yuan, or 28.85 yuan per American depository share, as compared to 52.31 billion yuan, or 19.55 yuan per Americand epository share, a year earlier.